Shareholders of Jerash Holdings (US), Inc. (NASDAQ:JRSH) will be pleased this week, given that the stock price is up 10% to US$3.30 following its latest quarterly results. It was a workmanlike result, with revenues of US$40m coming in 7.5% ahead of expectations, and statutory earnings per share of US$0.05, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Jerash Holdings (US)'s twin analysts are now forecasting revenues of US$154.2m in 2025. This would be a solid 18% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 38% to US$0.18. Before this latest report, the consensus had been expecting revenues of US$142.3m and US$0.32 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

The consensus price target fell 5.6%, to US$4.25, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jerash Holdings (US)'s past performance and to peers in the same industry. The analysts are definitely expecting Jerash Holdings (US)'s growth to accelerate, with the forecast 40% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jerash Holdings (US) is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Jerash Holdings (US). Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Jerash Holdings (US) (of which 1 shouldn't be ignored!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.